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fru-gal

Three cheers Nationwide for bloodying housebuilder noses

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8 minutes ago, mathschoc said:

What's in it for Nationwide

If they have to repossess a leasehold with not much left on the lease, or a very expensive lease, they may not get much for it? 

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.

Quote

It’s great that Nationwide has set a new benchmark, but we need to go further. There is no reason why a ground rent should be any more than a peppercorn – say £5 a year. 

The system used to be that - peppercorn ground rents and a fixed figure.  Not so long ago even in the 80s and lenders weren't keen to lend on leasehold in those days but could be persuaded if the lease was say 999 years.  There were specialist leasehold lenders though.  I guess the lenders perception of risk must have changed after that possibly connected to deregulation, government attitudes on house prices and lender bailouts.

 

Edited by billybong

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2 hours ago, billybong said:

.

The system used to be that - peppercorn ground rents and a fixed figure.  Not so long ago even in the 80s and lenders weren't keen to lend on leasehold in those days but could be persuaded if the lease was say 999 years.  There were specialist leasehold lenders though.  I guess the lenders perception of risk must have changed after that possibly connected to deregulation, government attitudes on house prices and lender bailouts.

 

I wonder if the mood music from the treasury has changed since Gordon Nobsborne left office?

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4 hours ago, fru-gal said:

Oh what a fantastic article, thanks for posting, great piece of news.

Robert Stevens of Nationwide said: “As a mutual building society that looks to protect its members, we have decided to make changes to the way we value new-build properties on a leasehold basis. We are doing this to address the practice of using leasehold tenure where this is unnecessary, particularly for new-build houses, and to ensure that onerous leasehold terms, including ground rents, are properly considered and controlled in order to safeguard our mortgage members."

What's this? What commie nonsense is this? Those mutuals, always a hotbed of radicalism and free thought, they should all be forced to turn into proper banks IMMEDIATELY!

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Great news. And names are named, too:

Quote

Amazingly, giant builders such as Persimmon are still knocking out new-build estates where houses are being sold as leasehold, for which there can be no justification. Meanwhile, apartments should only be sold on a commonhold, not leasehold, basis. The legal structure is already in place – it just needs political will to force it on the developers.

My lease with Persimmon is £50/year. At least it is fixed with no increases. But it's grubby.

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3 hours ago, North London Rent Girl said:

Oh what a fantastic article, thanks for posting, great piece of news.

Robert Stevens of Nationwide said: “As a mutual building society that looks to protect its members, we have decided to make changes to the way we value new-build properties on a leasehold basis. We are doing this to address the practice of using leasehold tenure where this is unnecessary, particularly for new-build houses, and to ensure that onerous leasehold terms, including ground rents, are properly considered and controlled in order to safeguard our mortgage members."

What's this? What commie nonsense is this? Those mutuals, always a hotbed of radicalism and free thought, they should all be forced to turn into proper banks IMMEDIATELY!

Hasn't stopped them from lending billions to BTLers, most likely IO too.

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10 minutes ago, Eddie_George said:

Hasn't stopped them from lending billions to BTLers, most likely IO too.

Another round of printing looms.... I think it will be cheaper to use £50 notes as a substitute for wallpaper ;)

Edited by maverick73

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Let's not pretend NW are saints. They don't want to lend on them because they are worried they will be unsellable. Who wants a leasehold house with rocketing ground rents.

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4 hours ago, MARTINX9 said:

Let's not pretend NW are saints. They don't want to lend on them because they are worried they will be unsellable. Who wants a leasehold house with rocketing ground rents.

in London leaseholders, having been sucking up 125 year flat leases and paying approx. £4k a year in service charges + ground rents to be in the hub of London's culture..... 

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Is this only for new builds?

Or, is it another (indirect) assault on BTL?

 Many BTL flats bought in the late 90s may have their lease expiring now?

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12 hours ago, Fairyland said:

Is this only for new builds?

Or, is it another (indirect) assault on BTL?

 Many BTL flats bought in the late 90s may have their lease expiring now?

The minimum is usually 99 years, but even that is a ripoff when the cost of extending  a lease or buying the FH rises steeply once it goes below 80 years.  

High time the whole LH business was sorted out. 

A nephew of mine has a LH house that was a newbuild.  They've been there over 10 years and I haven't heard of any GR trouble.  However the land is close to a major canal, and I gather the LH business was something of a formality to keep control of what could be built there in future. 

I can sort of understand the point in blocks of flats, where share of FH can be a problem.  A daughter's friend has a flat in a very large converted Victorian house in W London, now 9 flats.  There has been a lot of trouble with some of the Fholders simply refusing to pay their share of essential repairs. Though of course there might be equal trouble if they were LH, if there was some predatory management company trying to rip them off. 

 

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18 hours ago, MARTINX9 said:

Let's not pretend NW are saints. They don't want to lend on them because they are worried they will be unsellable. Who wants a leasehold house with rocketing ground rents.

This......they own it until it is paid for, therefore they have the biggest interest in that they are not purchasing a pig in a poke......no property that wholly stands on the land that it occupies should be leasehold.....might as well rent it.....;)

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